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Tuesday 30 July 2013
Central Nebraska Man Sentenced to 60 Months Imprisonment for Distributing Methamphetamine in Grand Island, NebraskaRead the Press Release
United States Attorney Deborah R. Gilg announced that yesterday the Honorable John M. Gerrard, U.S. District Court Judge, sentenced Luis Jordan, 36, to 60 months imprisonment, to be followed by 4 years of supervised release, and he was ordered to pay a $100 special assessment, following his conviction for distribution of methamphetamine.
On November 4, 2011, and November 8, 2011, Jordan sold a total of 20 grams (about ¾ of an ounce) of 95% pure methamphetamine to a cooperating witness who was working with law enforcement in Grand Island. On October 20, 2012, Jordan set up a deal to sell 5 ounces of methamphetamine to a cooperating witness in Duncan, Nebraska. As Jordan arrived at the meeting location, he was stopped by law enforcement. Officers located a stuffed animal in the cargo area of his Chevrolet Tahoe that contained a Crown Royal bag and inside the bag was the methamphetamine.
The Central Nebraska Drug and Safe Streets Task Force in Grand Island and Specialized Narcotics Abuse Reduction Effort (SNARE) Drug Task Force in Columbus was responsible for the investigation of this case.
Caregiver Sentenced to Prison for TheftRead the Press Release
EUGENE, Ore. – Carel June Cody, 47, of Cottage Grove, was sentenced to 57 months in prison for her theft of Social Security benefits that spanned more than 16 years. In addition to prison, Cody was ordered to pay restitution in the amount of $203,528. Cody has also agreed to relinquish her federal Thrift Savings Plan retirement fund, worth approximately $36,000, to the government as well as her Cottage Grove residence.
According to Cody’s admissions and court records, Cody’s scheme to defraud began in 1996 when Cody concealed the death of John Arnold, who had been in her care, and buried his body on rural private property. Each month thereafter when Arnold’s Social Security retirement benefits were electronically deposited to his bank account, Cody forged Arnold’s name on checks payable to herself. The scheme was discovered when a relative of Cody’s husband, Ernest “Bud” Cook, found a letter written by Cook in 1996 describing the death of Arnold and the theft by Cody.
Calling Cody’s actions “an abuse of trust,” U.S. District Court Chief Judge Ann Aiken stated, “You became a person everyone is afraid of. We never will know what Mr. Arnold’s final days were like. I don’t know if you can ever get enough therapy to correct what you did.”
“The relentless team effort of the Social Security Administration, Office of Inspector General, and the U.S. Attorney’s Office is making a substantial impact on Social Security fraud in Oregon,” said United States Attorney Amanda Marshall. “These are important cases because when we hold these fraudsters accountable, we recoup stolen funds for the Social Security program and deter others from committing these crimes.”
Cook was sentenced to five years of probation for his receipt of stolen government property and ordered to perform 100 hours of community service for each year he is on supervision.
The case was investigated by the Social Security Administration Office of Inspector General, Office of Investigations, the Douglas County Sheriff’s Office, and the Roseburg Police Department, and was prosecuted by Special Assistant U.S. Attorney Helen L. Cooper, as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office.
Cahokia Man Pleads Guilty to Firearm OffenseRead the Press Release
On July 29, 2013, Renaldo D. Gordon, 30, of Cahokia, IL, pled guilty in United States Federal District Court, in East St. Louis, IL, to unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Gordon is scheduled for sentencing on November 1, 2013, at which time he faces a maximum potential sentence of 10 years in prison and a fine of up to $250,000, not more than 3 years supervised release after his prison term, and a mandatory special assessment of $100.
Facts brought out in court stem from a September 7, 2012, incident when two police officers responded to a report of shots fired on a street block in Centreville, IL. Officers canvassed streets near the area, observing three males in the vicinity. One of the men, Gordon, fit the description of the suspect. After being ordered to place his hands above his head, a firearm was noticed protruding from his right hip. Gordon denied firing the gun, but admitted ownership of the firearm found on him. Gordon had been previously convicted in St. Clair County, IL, on a weapons charge.
This case was investigated by the Centreville Illinois Police Department and is assigned to Special Assistant United States Attorney Neal C. Hong for prosecution.
Brooklyn Clinic Employee Sentenced to Eight Years in Prison in Connection with $77 Million Medicare Fraud SchemeRead the Press Release
Yuri Khandrius, 50, of Brooklyn, N.Y., was sentenced today to eight years in prison for his role in a $77 million Medicare fraud scheme.
In addition to the prison term, U.S. District Judge Nina Gershon of the Eastern District of New York sentenced Khandrius to three years of supervised release with a concurrent exclusion from Medicare, Medicaid and all federal and state health programs and an exclusion from any employment that involves handling of any federal or state funds; ordered him to forfeit $446,655; and ordered him to pay restitution in the amount of $10 million.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Loretta E. Lynch of the Eastern District of New York; Assistant Director in Charge George Venizelos of the FBI’s New York Field Office; and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services’s Office of Inspector General (HHS-OIG) made the announcement.
Khandrius pleaded guilty on Dec. 3, 2012, to one count of conspiracy to commit health care fraud, one count of health care fraud and one count of conspiracy to pay kickbacks.
Including Khandrius, 13 individuals have been convicted in this case.According to court documents, from 2005 to 2010, Khandrius was an employee of a clinic in Brooklyn that operated under three corporate names: Bay Medical Care PC, SVS Wellcare Medical PLLC and SZS Medical Care PLLC. According to court documents, the owners, operators and employees of the Bay Medical clinic paid cash kickbacks to Medicare beneficiaries and used the beneficiaries’ names to bill Medicare for more than $77 million in services that were medically unnecessary or never provided. The defendants billed Medicare for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
According to trial testimony, Khandrius, who holds no medical licenses or certifications, impersonated his co-defendant Dr. Gustave Drivas at the clinic. Drivas was the Bay Medical clinic’s “no-show” doctor. Khandrius admitted at his change of plea hearing that he signed prescriptions and medical charts in Drivas’s name and performed medical tests and procedures on patients although he was not licensed to do so. Drivas was convicted by a federal jury on April 8, 2013, of health care fraud conspiracy and health care fraud.
Khandrius’s impersonation of Drivas assisted the conspirators in disguising the use of Drivas’s Medicare billing number to bill more than $20 million in claims for services that were not rendered or medically unnecessary. According to trial testimony, Khandrius also directed a phony allergy testing fraud at the Bay Medical clinic that involved giving patients bottles of tap water instead of allergy medications; wrote prescriptions for co-workers and at least one minor child using Drivas’s prescription pad; and, in response to a written audit from Medicare, falsely filled out medical charts in an attempt to back up the billing and deceive Medicare.
The government’s investigation included the use of a court-ordered audio/video recording device hidden in a room at the clinic where the conspirators paid cash kickbacks to corrupt Medicare beneficiaries. The conspirators were recorded paying approximately $500,000 in cash kickbacks during a period of approximately six weeks from April to June 2010. This room was marked “PRIVATE” and featured a Soviet-era poster of a woman with a finger to her lips and the words “Don’t Gossip” in Russian. The purpose of the kickbacks was to induce the beneficiaries to receive unnecessary medical services or to stay silent when services not provided to the patients were billed to Medicare.
The case was investigated by the FBI and HHS and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. This case is being prosecuted by Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shannon Jones of the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Brooklyn Clinic Employee Sentenced to Eight Years in Prison in Connection with $77 Million Medicare Fraud SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Yuri Khandrius, 50, of Brooklyn, New York, was sentenced to eight years in prison for his role in a $77 million Medicare fraud scheme. In addition to the prison term, U.S. District Judge Nina Gershon of the Eastern District of New York sentenced Khandrius to three years of supervised release with a concurrent exclusion from Medicare, Medicaid and all Federal health programs, ordered him to forfeit $446,655 and ordered him to pay restitution in the amount of $10,000,000. Khandrius’s surrender date is September 16, 2013.
The sentence was announced by U.S. Attorney for the Eastern District of New York Loretta E. Lynch; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Special Agent-in-Charge Thomas O’Donnell of the HHS Office of Inspector General (HHS-OIG).
Khandrius pleaded guilty on December 3, 2012 to one count of conspiracy to commit health care fraud, one count of health care fraud and one count of conspiracy to pay kickbacks. Including Khandrius, 13 individuals were convicted in this case, either through guilty plea or trial conviction.
According to court documents, from 2005 to 2010, Khandrius was an employee of a clinic in Brooklyn that operated under three corporate names: Bay Medical Care PC, SVS Wellcare Medical PLLC and SZS Medical Care PLLC (Bay Medical clinic). According to court documents, the owners, operators and employees of the Bay Medical clinic paid cash kickbacks to Medicare beneficiaries and used the beneficiaries’ names to bill Medicare for more than $77 million in services that were medically unnecessary or never provided. The defendants billed Medicare for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
According to trial testimony, Khandrius, who holds no medical licenses or certifications, impersonated his co-defendant Dr. Gustave Drivas at the clinic. Dr. Drivas was the Bay Medical clinic’s “no-show” doctor. Khandrius admitted at his change of plea hearing that he signed prescriptions and medical charts in Drivas’s name, and performed medical tests and procedures on patients although he was not licensed to do so. Khandrius’s impersonation of Dr. Drivas assisted the conspirators in disguising the use of Drivas’s Medicare billing number to bill more than $20 million in claims for services that were not rendered or medically unnecessary. (Drivas was convicted of health care fraud conspiracy and health care fraud by a jury after a seven-week trial.) According to trial testimony, Khandrius also directed a phony allergy testing fraud at the Bay Medical clinic that involved giving patients bottles of tap water instead of allergy medications, wrote prescriptions for co-workers and at least one minor child using Dr. Drivas’s prescription pad and in response to a written audit from Medicare, falsely filled out medical charts in an attempt to back up the billing and deceive Medicare.
The government’s investigation included the use of a court-ordered audio/video recording device hidden in a room at the clinic, in which the conspirators paid cash kickbacks to corrupt Medicare beneficiaries. The conspirators were recorded paying approximately $500,000 in cash kickbacks during a period of approximately six weeks from April to June 2010. This room was marked “PRIVATE” and featured a Soviet-era poster of a woman with a finger to her lips and the words “Don’t Gossip” in Russian. The purpose of the kickbacks was to induce the beneficiaries to receive unnecessary medical services or to stay silent when services not provided to the patients were billed to Medicare.
This case is being prosecuted by Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shannon Jones of the Eastern District of New York. The case was investigated by the FBI and HHS.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Boston Man Indicted for Social Security, Passport FraudRead the Press Release
BOSTON – A Boston man was charged today with making false statements in passport applications and illegally receiving disability payments.
Antonio Pulinario Brea, 54, was indicted with theft of government money and two counts of making false statements in passport applications.
The indictment alleges that from 2004 to 2013, Pulinario Brea illegally received more than $60,000 in Social Security disability payments under another person’s identity. It is further alleged that in 2010 and 2011, Pulinario Brea used the alias to apply for United States passports.
The offenses with which Pulinario Brea is charged carry a maximum penalty of up to 10 years in prison, followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration Office of the Inspector General, Office of Investigations, Boston Office; and Bruce Foucart, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Aurora Man Sentenced to Six Years in Prison for $300,000 Construction SchemeRead the Press Release
An Aurora man was sentenced to more than six years in prison and ordered to pay restitution for crimes related to a scheme of more than $300,000 involving construction projects, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Robert J. Berryhill, 51, previously pleaded guilty to five counts of mail fraud, two counts of wire fraud, and one count each of aggravated identity theft and false personation of an officer or employee of the United States.
U.S. District Judge Sara Lioi sentenced Berryhill to 75 months in prison. She ordered him taken into custody and remanded at the conclusion of the hearing.
Berryhill created a fictitious company as a way to divert money on construction projects for his own personal use, including the restoration of a vintage Corvette sports car he had purchased, according to court documents.
“This defendant abused the trust of his employer, his colleagues and his customers in an effort to enrich himself,” said Dettelbach. “He used public contracts as a way to get his Corvette restored and his pockets lined with hundreds of thousands of dollars.”
“Robert Berryhill created false businesses, false invoices and ultimately pretended to be an FBI employee, all in a desperate attempt to defraud others out of $304,000,” Anthony said. “The FBI remains committed to detecting and stopping those defrauding others.”
Berryhill, previously served as the senior vice president of Carnegie Management and Development Corp. (CMDC) in Westlake, Ohio.
Knoxbi Company, LLC, which was managed by CMDC, won the bid to build an FBI office in Knoxville, Tennessee in August 2007. The company used Blaine Construction Company to serve as the on-site general contractor, according to court documents.
In March 2009, Indy-Fedreau LLC, which was also managed by CMDC, won the bid to construct an FBI building in Indianapolis. The company used Welty Building Company as the general contractor, according to court documents.
At the same time, Berryhill also created a fictitious contractor known as American Excavators Company (AEC) for the purpose of submitting false invoices to divert CMDC monies to his personal use, according to court documents.
From August 2008 through September 2009, Berryhill defrauded CMDC, Knoxbi, Indy-Fedreau, Blaine and Welty to obtain money. He did this by creating false invoices in the name of Ore Enterprises – the Pennsylvania company Berryhill hired to restore his vintage Corvette – and then submitted them to Blaine and Welty. Those companies paid the invoices then passed the cost on to Knoxbi and Indy-Fedreau for final payment, according to court documents.
Berryhill also created false invoices in the name of AEC that he submitted to Blaine and Welty. Those companies paid AEC and then passed the cost of the invoice to Knoxbi and Indy-Fedreau for final payment, according to court documents.
Overall, Berryhill caused an actual loss of at least $304,669. Judge Lioi ordered him to pay that amount in restitution.
Berryhill also falsely pretended to be an FBI employee identified as “W.C.M.” on July 28, 2008, and demanding that Blaine pay an invoice from Ore regarding the construction of an FBI building in Knoxville, according to court documents.
The case resulted from an investigation conducted by Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Robert J. Patton.
Atlanta Man Sentenced for Filing Fraudulent Tax ReturnsRead the Press Release
ATLANTA - Frederick Roberts has been sentenced to serve over seven years in federal prison for filing fraudulent federal and state tax returns and for stealing the identities of his victims.
“Identity thieves who file fraudulent tax returns rob from the public fisc and cause immeasurable damage to the innocent victims whose names were stolen,” said United States Attorney Sally Quillian Yates. “We have a duty to protect the tax dollars paid by hardworking Americans, and we will not stand idly by while criminals like Roberts steal those funds.”
According to United States Attorney Yates, the charges and other information presented in court: Roberts prepared fraudulent federal and state income tax returns using stolen identities. He submitted tax returns in other people’s names seeking large refunds and had the checks sent to an address where he could retrieve the mail. He cashed the refund checks with unscrupulous check cashers, who were willing to accept the checks even though none of them were in Roberts’ name. Roberts sought over $899,000 in refunds between May 2009 and March 2011, and he actually received $866,436.66.
“Identity thieves are becoming more devious, creative, and conniving,” said Veronica Hyman-Pillot, Special Agent in Charge IRS Criminal Investigation. “They steal our identities, steal government money and prey upon our citizens. Be assured that IRS Criminal Investigation, with our law enforcement partners, will continue to be proactive in the investigation of individuals who engage in similar behavior. IRS is extremely grateful for the cooperation and assistance we have received from our partners at the local, state and federal level, especially the United States Secret Service, United States Postal Service and the Georgia Department of Revenue.”
“The United States Secret Service and our law enforcement partners take an aggressive approach towards investigating those who commit identity theft and bank fraud. We will continue to work closely with prosecutors to ensure offenders are put behind bars,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
Roberts, 51, of Atlanta, Ga., was sentenced today by United States District Judge William S. Duffey, Jr., to seven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $866,436.66. Roberts was convicted on these charges on March 8, 2013, after he pleaded guilty.
This case is being investigated by the Internal Revenue Service Criminal Investigation, the United States Secret Service, and the Georgia Department of Revenue Office of Special Investigations.
Assistant United States Attorney Christopher C. Bly prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Arizona Man Pleads Guilty to Moving Money and Marijuana Between Ohio, Arizona and MexicoRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Mohamed Keisar, 36, of Phoenix, Arizona, pleaded guilty in U.S. District Court to one count of conspiracy to possess with the intent to distribute and to distribute 100 kilograms or more of marijuana and to one count of unlawfully operating an unlicensed money transmitting business. Keisar faces a minimum mandatory sentence of five years in prison and up to 40 years in prison and a fine of up to $5 million.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS), Robin Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco and Firearms, William Hayes, Acting Special Agent in Charge, Homeland Security Investigations, Columbus Division of Police Chief Kim Jacobs announced the guilty plea entered before U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, a joint investigation determined that between January 2009 and December 2012, Keisar was involved in the transportation, sale, and distribution of marijuana in the Southern District of Ohio. Specifically, the investigation found that Keisar, a truck driver, transported marijuana from California and Arizona, to Columbus, Ohio via semi-tractor trailer. The marijuana, which would be co-mingled with legitimate loads, would then be off-loaded to Keisar’s co-conspirators.
Keisar knowingly operated an unlicensed money transmitting business by physically transporting the money that was derived from the sale of marijuana in Columbus, Ohio back to California and Arizona.
On November 27, 2012 investigators, while conducting surveillance, observed a subject provide Keisar with $939,220 in U.S. Currency that had been derived from the sale of marijuana in Columbus, Ohio. Keisar was to transport the U.S. currency in his semi-tractor trailer from Columbus, Ohio to San Diego, CA and to deliver the funds to the source of supply. IRS agents determined that Keisar has never registered and/or been licensed to operate a money transmitting business by the Department of Treasury.
As part of the plea agreement, Keisar agreed to forfeit $1,070,513.83 in U.S. currency either seized from Keisar’s vehicle or from a co-conspirator on several dates between February 2012 and November 2012
Stewart commended the cooperative investigation conducted by the agents and officers of IRS, ATF, HSI, and the Columbus Division of Police. Stewart also commended Assistant U.S. Attorney David DeVillers who is representing the United States.
# # #Andover Man Convicted for Possessing Child PornographyRead the Press Release
BOSTON – An Andover man was convicted today for possessing child pornography.
William S. Thomas, 65, pleaded guilty before U.S. District Judge Patti B. Saris to possession of child pornography.
In October 2010, the United States Postal Service and Canadian officials began an investigation into a movie production company based out of Toronto which operated a website that offered DVDs and streaming videos for sale. The majority of these films involved young prepubescent males. In May 2011, officials executed a search warrant and seized thousands of videos, DVDs, photos, computers, business records and shipping labels. Law enforcement determined that these films were being shipped to customers worldwide, including hundreds of individuals residing in the United States. During a search of these records, officials determined that William S. Thomas of Andover was a customer and had purchased materials between 2005 and 2011.
In September 2012, a number of these items were seized from Thomas’ home following the execution of a federal search warrant. The materials seized, consisting of DVDs and photographs, contained video and photographs of prepubescent males engaged in sexually explicit conduct.
Sentencing is scheduled for Oct. 30, 2013. Thomas faces up to 10 years in prison, followed by a lifetime of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz, Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, and Chief Brian J. Pattullo of the Andover Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Albuquerque Man Pleads Guilty to Using a Firearm to Rob a Pharmacy of Prescription PainkillersRead the Press Release
ALBUQUERQUE – James Phillip Tafoya, 43, of Albuquerque, N.M., entered a guilty plea this morning to using a firearm in relation to a crime of violence under a plea agreement with the U.S. Attorney’s Office. Under the terms of the plea agreement, Tafoya will be sentenced to seven years in federal prison followed by a term of supervised release to be determined by the court.
Tafoya was arrested in Jan. 2013 on a three-count indictment charging him with (1) violating the Hobbs Act by robbing a business involved in interstate commerce, (2) using a firearm in relation to a crime of violence, and (3) theft of medical products. Count 1 of the indictment alleged that Tafoya robbed an employee of an Albuquerque-area CVS Pharmacy at gunpoint on Nov. 3, 2012, and stole Oxycodone and Oxycontin. Count 2 alleged that Tafoya used a firearm to perpetuate the robbery, and Count 3 alleged that Tafoya used violence and the threat of violence to unlawfully take pre-retail medical products.
This morning, Tafoya pleaded guilty to Count 2 of the indictment. In entering his guilty plea, Tafoya admitted that on Nov. 3, 2012, he committed armed robbery of the CVS store located at 9640 Menual Blvd NE, in Albuquerque. Tafoya stated that he entered the store, displayed and brandished a firearm in order to intimidate the clerk, and demanded that the clerk give him Oxycodone and Oxycontin. He also admitted knowing that CVS is a business engaged in interstate commerce, and that he used a firearm to knowingly and unlawfully take pre-retail medical products through the threat of violence or force.
Tafoya has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of the plea agreement, Counts 1 and 3 of the indictment will be dismissed after Tafoya is sentenced.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford. The case was brought as part of a new law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. This new initiative is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under the anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from our communities for as long as possible.
9 Individuals Indicted and Arrested for Drug Trafficking in the Municipality of PonceRead the Press Release
Defendants face a forfeiture allegation of one million dollarsSAN JUAN, PR – On Wednesday, July 24, a federal grand jury indicted 9 individuals as the result of an investigation led by Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HIS), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department (PRPD), announced today United States Attorney Rosa Emilia Rodríguez-Vélez.
The indictment charges 9 individuals in a two-count indictment with possession of firearms in furtherance of a drug trafficking crime and conspiracy to possess with intent to distribute controlled substances at the “Méndez Vigo” area, located within the municipality of Ponce. The object of the conspiracy was to distribute “crack” (cocaine base), cocaine, marihuana and heroin for significant financial gain and profit.
The defendants are: Leonardo Lizardi-Muñiz, aka “Pichu;” Reynaldo Lizardi-Muñiz, aka “Rey;” Mariano Maldonado-Muñiz, aka “Marianito;” Jayson Rentas-Muñiz, aka “Jayson;” José L. Rinaldi-Vélez, aka “Joseito;” Jorge Rivera-Rivera, aka “El Mono;” Elvin Romàn-Díaz, aka “Piojillo;” Omar Sotomayor-Sepúlveda, aka “Omaro;” and José A. Villodas-Chamorro, aka “Villoda.”According to the indictment, the defendants would possess, carry, brandish, discharge and use firearms to protect themselves and their drug trafficking activities. They would routinely wear bullet proof vests in order to protect themselves during “shootouts” with rival drug traffickers.
“These arrests confirm the Justice Department’s commitment to hold ruthless drug traffickers responsible for selling narcotics and promoting the violence we are seeing in our communities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue with our efforts of investigating and prosecuting drug trafficking organizations, until we have covered every municipality in Puerto Rico.”
The case is being prosecuted by Special Assistant United States Attorney Kelly Zenón and is part of the US Attorney’s Office Firearms and Violence Reduction Initiative.
If convicted, the defendants face a minimum of fifteen (15) years of imprisonment and a maximum of life imprisonment, with fines of up to $10 million. Criminal indictments are only charges and not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
$17 Million False Claims Act Judgment Entered Against Washington, D.C. Health Care Provider-Government Alleged Double-Billing for Tests and Services-Read the Press Release
WASHINGTON – The U.S. District Court for the District of Columbia has entered judgment for more than $17 million against Dr. Ishtiaq Malik and his two companies, Ishtiaq Malik M.D., P.C. and Advanced Nuclear Diagnostics, for submitting false nuclear cardiology claims to federal and state health care programs, the Justice Department announced today. Ishtiaq Malik, a nuclear cardiologist, has practiced in the District of Columbia metropolitan area since 2002.
The government’s allegations focused on Dr. Malik’s inappropriate claims for myocardial perfusion studies, commonly referred to as nuclear stress tests. These diagnostic imaging studies determine whether a patient has heart disease due to inadequate blood flow to the heart muscles. The test is usually performed in two separate phases: stress and rest. The two phases, which can be conducted on the same day or separate days, must be coded and submitted as one test. The government alleged that, contrary to these requirements, Dr. Malik and his companies double-billed for multi-day nuclear stress test studies.
The Honorable Robert L. Wilkins issued the judgment today.
“This doctor fraudulently diverted critical resources from government health care programs, contributing to the rising cost of health care for all Americans,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “This lawsuit was designed to hold the doctor to account for bilking the taxpayer. We will do everything in our power to obtain every cent of the $17 million this doctor now owes the American people.”
“Physicians who participate in government health care programs must bill for their services accurately and honestly,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “The Department of Justice is committed to pursuing those physicians who seek financial gain at the expense of taxpayer-funded programs.”
The government alleged that Dr. Malik submitted false claims to Medicare, District of Columbia Medicaid, Maryland Medicaid, TRICARE and the Federal Employees Health Benefits Plan. In addition, the government alleged that Dr. Malik and his companies billed under codes that did not apply to the nuclear stress test studies he administered and billed for services already included in the payment for nuclear stress test codes, such as intravenous injections, drug infusions, 3D rendering and drug administration. He and his companies also allegedly billed for services not performed.
“Federal employees deserve health care providers who meet the highest standards of ethical and professional behavior,” said Patrick E. McFarland, Inspector General of the U.S. Office of Personnel Management. “This judgment reminds health care providers that they must observe those standards and reflects the commitment of federal law enforcement organizations to pursue improper and illegal conduct that places the health care system at risk.”
“Dr. Malik fraudulently charged for his services and taxpayers deserve protection from such scams,” said Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services. “OIG agents, working with other law enforcement agencies, conducted interviews, gathered records and analyzed data to conclude a successful investigation and bring the doctor to justice.”
The government filed suit against Dr. Malik and his two companies under the False Claims Act, which allows the government to recover three times its damages, plus penalties, from those who submit false claims for federal funds. The state of Maryland and the District of Columbia subsequently joined the lawsuit under their respective state false claims acts.
This civil lawsuit illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.7 billion through False Claims Act cases, with more than $10.7 billion of that amount recovered in cases involving fraud against federal health care programs.
This investigation was a cooperative effort among the Commercial Litigation Branch, Civil Division, Department of Justice; the U. S. Attorney’s Office for the District of Columbia; the Maryland Attorney General’s Office; and the Attorney General’s Office for the District of Columbia. The Department of Health and Human Services’ Office of the Inspector General, the Office of Personnel Management’s Office of the Inspector General, and the District of Columbia’s Office of the Inspector General, Medicaid Fraud Control Unit, assisted in the investigation.
The lawsuit is United States of America et al. v. Malik et al., No. 1:12-01234-RLW (D.D.C.).
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Monday 29 July 2013
Waterbury Man Sentenced to 30 Months in Federal Prison for Trading Child PornographyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that PAUL D’AMBROSIO, 49, of Waterbury, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by six years of supervised release, for trading child pornography on the Internet.
According to court documents and statements made in court, on August 8, 2012, a Hartford Police detective assigned to the Connecticut Child Exploitation Task Force logged into a publicly-available Internet file sharing program and downloaded approximately 50 images and 10 videos of child pornography from shared directories maintained by D’AMBROSIO. On August 30, 2012, Task Force agents searched D’AMBROSIO’s residence and seized a laptop computer and related components. A forensic search of the computer revealed hundreds of images and videos of child pornography, including images of children under the age of 12 engaged in sexually explicit conduct and images of children engaging in sadistic or masochistic conduct.
D’AMBROSIO was arrested on August 30, 2012. On March 11, 2013, he pleaded guilty to one count of receipt and distribution of child pornography.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies, including the Hartford Police Department. The Waterbury Police Department also assisted the investigation. The case was prosecuted by Assistant United States Attorney Sarala V. Nagala.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Village Market Food Centers’ Comptroller Sentenced to 87 Months in Prison for Stealing from CompanyRead the Press Release
GRAND RAPIDS, MICHIGAN – Christopher Earl Pratt, 42, of Portage, Michigan was sentenced today to 87 months (7 years and 3 months) in federal prison for defrauding his former employer, Village Market Food Centers, the U.S. Attorney’s Office announced today. In addition to the prison term, Chief U.S. District Judge Paul L. Maloney imposed a 3-year term of supervised release that will commence once Pratt is released from imprisonment. In addition to the prison and supervised release terms, Pratt was ordered to pay restitution in the amount of $6,548,706.30, plus ordered to forfeit an additional $6,548,706.30 to the government.
Pratt abused his position as comptroller to steal from Village Market, nearly putting the company out of business and resulting in the closure of at least three stores and the termination of 170 employees. Pratt concealed his crime from Village Market, which did not discover the theft until Pratt stole nearly seven million dollars over seven to eight years. Pratt used the stolen money primarily to purchase and refurbish “muscle-cars” including fourteen Ford Mustangs, seven Chevrolet Chevelles, four Dodge Challengers, five Chevrolet Camaros, four Jeep Wranglers, three Buick Skylarks, two Plymouth Barracudas, one Plymouth Fury, one Pontiac GTO, and one Ford Torino. The FBI recovered many of those vehicles and they were turned over to a receiver seeking to recover assets on behalf of Village Market.
The case was investigated by the FBI, St. Joseph, Michigan.
END
Two Defendants Indicted in Alleged Bank Robbery Attempt in Richmond, Ill., During Which Third Suspect Was Fatally ShotRead the Press Release
CHICAGO – Two defendants who were arrested in May after they allegedly attempted to rob a bank in Richmond, Ill., during which a third suspect was fatally shot, will be arraigned on federal charges tomorrow in U.S. District in Chicago. The defendants, AARON RUSSELL and ROBERTO FAVELA, who were initially charged in Federal Court in Rockford, were indicted last week by a federal grand jury in Chicago, moving the case to the Federal Court in Chicago.
Russell, 40, of Orland Hills, and Favela, 34, of Chicago, are scheduled to be arraigned at 10:30 a.m. tomorrow before U.S. Magistrate Judge Sheila Finnegan. They were indicted last Thursday on one count each of attempted bank robbery, conspiracy to commit bank robbery, and using firearms during a violent crime. Russell alone was also indicted for illegally possessing firearms as a previously convicted felon.
On May 10, Russell, Favela, and Tony Starnes, 45, of Chicago, allegedly traveled from Chicago to Richmond, where they planned to and attempted to rob the Associated Bank on Main Street in the McHenry County village near the Wisconsin border. FBI agents confronted the men when they arrived in the bank’s parking lot in two vehicles, and Starnes, who was driving one of the cars, was shot and killed after he drove his car into an agent’s vehicle. Russell and Favela were arrested at that time.
Between them, Russell and Favela allegedly possessed four loaded guns, and Russell was charged with being a felon-in-possession of three of the firearms.
The charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. Various local police departments and county sheriff’s departments assisted in the investigation and apprehension of the defendants. The government is being represented by Assistant U.S. Attorneys Christopher Stetler and Marc Krickbaum.
Attempted bank robbery carries a maximum penalty of 20 years in prison; conspiracy to commit bank robbery carries a maximum of 5 years in prison; and carrying firearms during a crime of violence carries a mandatory consecutive sentence of 5 years and a maximum of life in prison, and each count carries a $250,000 maximum fine. The felon-in-possession of firearms count against Russell carries a maximum of 10 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt against each defendant.
Indictment
Twice Convicted Sex Offender Sentenced to 51 Years in Prison for Eight Counts of Production of Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Terrance Dion Robinson, age 39, of Baltimore, Maryland, today to 51 years in prison, followed by lifetime supervised release, for eight counts of sexually exploiting minors to produce child pornography. Robinson had two previous convictions in Montgomery County, Maryland, for crimes involving the sexual abuse of children. Judge Bredar ordered that upon his release from prison Robinson must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Robinson’s plea agreement, between 2007 and 2010, Robinson produced images and videos of two prepubescent minors engaged in sexually explicit conduct, while he was alone with the victims. Additionally, Robinson used a publicly available file sharing program to download images and videos of child pornography from the internet. Robinson saved the images and videos to his laptop computer, external hard drive, and to other digital media.
On October 18, 2010, detectives from the Child Abuse Unit of the Baltimore Police Department searched Robinson’s residence and seized Robinson’s computer equipment and digital camera. During a subsequent forensic examination of the computer and digital media, investigators found images and videos of the victims engaged in sexually explicit conduct produced by Robinson. The digital media seized from Robinson’s home also contained over 600 images of children engaged in sexually explicit conduct, including at least 4 videos. The videos were downloaded from the internet in 2010 using a file sharing program. The forensic examination of the computer, external hard drive, thumb drives, flash drives, CDs and DVDs revealed that Robinson regularly searched for files, websites and discussions relating to child pornography and encryption.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, and the Baltimore City State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow and former Special Assistant United States Attorney Christine Duey of the U.S. Justice Department, who prosecuted the case.
Twice Convicted Sex Offender Sentenced to 51 Years in Prison for Eight Counts of Production of Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Terrance Dion Robinson, age 39, of Baltimore, Maryland, today to 51 years in prison, followed by lifetime supervised release, for eight counts of sexually exploiting minors to produce child pornography. Robinson had two previous convictions in Montgomery County, Maryland, for crimes involving the sexual abuse of children. Judge Bredar ordered that upon his release from prison Robinson must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Robinson’s plea agreement, between 2007 and 2010, Robinson produced images and videos of two prepubescent minors engaged in sexually explicit conduct, while he was alone with the victims. Additionally, Robinson used a publicly available file sharing program to download images and videos of child pornography from the internet. Robinson saved the images and videos to his laptop computer, external hard drive, and to other digital media.
On October 18, 2010, detectives from the Child Abuse Unit of the Baltimore Police Department searched Robinson’s residence and seized Robinson’s computer equipment and digital camera. During a subsequent forensic examination of the computer and digital media, investigators found images and videos of the victims engaged in sexually explicit conduct produced by Robinson. The digital media seized from Robinson’s home also contained over 600 images of children engaged in sexually explicit conduct, including at least 4 videos. The videos were downloaded from the internet in 2010 using a file sharing program. The forensic examination of the computer, external hard drive, thumb drives, flash drives, CDs and DVDs revealed that Robinson regularly searched for files, websites and discussions relating to child pornography and encryption.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, and the Baltimore City State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow and former Special Assistant United States Attorney Christine Duey of the U.S. Justice Department, who prosecuted the case.
Twenty-Eight People Indicted for Methamphetamine Conspiracy in Whitley CountyRead the Press Release
CITY, KY - A federal indictment, unsealed today, charges 28 individuals from Whitley County, KY., with a conspiracy to manufacture large quantities of methamphetamine.
Investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Kentucky State Police (KSP), U.S. Marshal’s Office (USMS) and the Williamsburg Police Department arrested eight defendants this morning in Whitley County. All of the other defendants are already in custody.
On Thursday, July 25, a superseding indictment, which is a charging document that alters or changes information from a previous indictment, was returned sealed by a federal grand jury in London. The superseding indictment added 16 new defendants in a conspiracy to distribute at least 500 grams of a methamphetamine mixture over the course of approximately three and a half years. The original indictment, filed in May, charged 12 defendants in the conspiracy. The superseding indictment also charges some of the defendants with additional drug and firearm offenses.
Specifically, 35 year-old James Forest Manning is charged with manufacturing methamphetamine, carrying and using a firearm during and in relation to a drug trafficking offense and being an unlawful user of methamphetamine in possession of firearms. Jamie Mark Gibson 41, and Danny Lee Fyffe, 49, are charged with being unlawful users of methamphetamine in possession of a firearm.
The superseding indictment also alleges that Daniel John Moeser, 44, possessed firearms and explosives after having previously been convicted of a felony offense. Lisa Canada Ball, 49, is charged with being an unlawful user of methamphetamine in possession of firearms and explosives. Both defendants were charged with these offenses in the original indictment.
The other defendants indicted in the case are Bobby Darrell Canada, II, 26; David Allen Davis, 29; Robert Joe Gibson, 23; Michelle Manning, 33; Wayne Marcus, 32; Billy Ray Richardson, 35; Anthony Rose, 32; Jerry White, 36; Beverly Wilson, 28; James Bennett, 39; Wendell Ralph Canada, 31; Ryan David Carlson, 36; George Thomas Hubbard, 49; Mark A. Morrow, 46; Harrison B. Sulfridge, 33; Joanna Cansler, 55; Teanna Marie Cansler, 33; Robert Church, 27; William Helbig, Jr., 36; Suzann Judy Phillips, 49; Anna Davis, 24; Jason Wade Taylor, 31 and Aaron David Ellison, 35;
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Stuart L. Lowery, Special Agent in Charge, Bureau of Tobacco, Firearms and Explosives (ATF), Wayne Bird, Police Chief, Williamsburg Police Department and Loren Carl, U.S. Marshal for the Eastern District of Kentucky, jointly announced the superseding indictment today.
The investigation preceding the indictment was a result of a joint collaboration between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Post 11 of the Kentucky State Police, the Williamsburg Police Department; the U.S. Marshal’s Office; Kentucky Division of Probation and Parole; the Whitley County Sheriff’s Department and the Commonwealth Attorney’s Office for the 34th Judicial Circuit.
Arraignments for some defendants are set for August 2, 2013, while the defendants arrested today will make their initial appearances in court tomorrow. The conspiracy charge carries a maximum of 20 years in prison. Manning faces a minimum of five years in prison and a maximum of life for carrying and using a firearm during a drug trafficking crime. Additionally, he faces a maximum of 20 years for the manufacturing methamphetamine charge. The defendants charged with firearm/weapons offenses face a maximum of 10 years imprisonment.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial, at which the government must prove their guilt beyond a reasonable doubt.
Title of the news release goes hereRead the Press Release
MOBILE, Ala. - Cecily Ann Colvin, 23, of Theodore, Alabama, was sentenced today in federal court for her participation in a scheme to manufacture methamphetamine. Colvin pled guilty to the charge of conspiracy to manufacture methamphetamine in April of this year.
Court documents showed that Colvin and her co-defendant Clarence Lee were living at a trailer in Grand Bay, Alabama, when a DHR case worker arrived to perform a safety check on two of Colvin’s children who also lived there. The case worker observed materials which appeared to be a meth lab in the trailer and contacted the Mobile County Sheriff’s Office. Sheriff’s deputies responded to the call and arrived at the scene. One of the children was present at the residence at that time with a relative. Colvin, Lee and the second minor child arrived in a vehicle while the deputies were there. The deputies found a pistol in the vehicle and confronted Colvin and Lee about the circumstances, asking for consent to search the residence. Both provided permission to search and the deputies found materials used in the manufacture of methamphetamine. Colvin admitted her involvement in the scheme after she was advised of her rights by the deputies. She admitted that Lee and another co-defendant Miles Alexander cooked meth at the residence. She and the others bought pseudoephedrine used in the methamphetamine manufacturing process.
This morning,United States District Court Judge William Steele imposed a sentence of 48 months imprisonment in the case. Judge Steele also ordered Colvin to undergo drug abuse treatment and mental health counseling during her imprisonment and after she is released on three years of supervision following her imprisonment. He ordered that Colvin pay the mandatory $100 special assessment, but found that she was not financially able to pay a fine. Colvin was taken into custody immediately following the imposition of sentence.
The case was investigated by the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Three Plead Guilty in Connection with Drug Trafficking CaseRead the Press Release
Jackson, Miss. – Aundra Mason, a/k/a Grey Head, 36, Fredrick Darnell Ford, 38, and Shamika Y. Fulford, 35, all of Jackson, pled guilty in U.S. District Court today to charges in connection with a drug trafficking investigation, announced U.S. Attorney Gregory K. Davis and Daniel McMullen, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
Aundra Mason pled guilty to possession with intent to distribute cocaine hydrochloride. He faces a maximum penalty of 20 years in prison and a $1 million fine.
Frederick Darnell Ford pled guilty to harboring and concealing a fugitive. He faces a maximum penalty of five years in prison and a $250,000 fine.
Shamika Y. Fulford pled guilty to use of a communications facility to further a drug trafficking crime. She faces a maximum penalty of four years in prison and a $250,000 fine.
The defendants will be sentenced on October 29, 2013 by U.S. District Judge David C. Bramlette III.
This case is the result of an extensive investigation, dubbed “Operation Paperchase”, targeting illegal narcotics distribution in the City of Jackson. The lead investigative agency in this operation was the Federal Bureau of Investigation. Assisting agencies included the Drug Enforcement Administration, U.S. Marshals Service, Gulf Coast HIDTA, Mississippi Bureau of Narcotics, and Jackson Police Department.
The case was prosecuted by Assistant United States Attorney Erin Chalk.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Three Lakeland Men Sentenced to Federal Prison for Selling Firearms and DrugsRead the Press Release
Tampa, FL - U.S. District Judge Steven D. Merryday has sentenced three Lakeland residents to federal prison terms for various firearm and drug violations. Phillip Thomas (28) was sentenced today to three years in federal prison for transferring an unregistered short barreled shotgun and aiding and abetting a felon in possession of a firearm. On July 24, 2013, Michael Joseph Harper (25) was sentenced to eight years’ imprisonment for transferring an unregistered short barreled shotgun and for being a felon in possession of a firearm. On July 17, 2013, Merryday sentenced Joshua Paul Blevins (20) to 5 years’ probation for aiding and abetting a felon in possession of a firearm. Thomas, Harper and Blevins pleaded guilty to the offenses in May 2013.
According to court documents, Harper, along with Thomas and Blevins, sold multiple firearms and drugs to undercover law enforcement agents. Harper, a convicted felon, either sold or was involved in selling forty-five firearms, Hydrocodone, Xanax, and Oxycodone pills, marijuana, and cocaine. Thomas sold six firearms, including a short barreled shotgun, cocaine, Xanax, and Hydrocodone pills. Blevins assisted Harper in selling two high-powered rifles.
Thomas, Harper and Blevins were arrested during Operation “Smoke-N-Guns.” “Smoke-N-Guns” was a joint law enforcement effort that targeted convicted felons, drug dealers and gang members who were illegally possessing or selling firearms in the Lakeland area.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
- This release removed
Texas Man Sentenced for Presentation of False Information to Customs OfficersRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney, William J. Hochul, Jr., announced that Mark Logan, 63, of Southlake, Texas, pleaded guilty to presenting false information to customs officers and sentenced to pay a $5,000 fine by U.S. Magistrate Judge Leslie G. Foschio.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant was President of Nevada Classics, a classic car dealership, in Las Vegas, Nevada. In that role, Logan facilitated the sale and transportation of a 1957 replica Shelby Cobra automobile from a Canadian seller to a buyer in the United States. William Corum, a contractor who had done work for Nevada Classics in the past, was paid by the buyer to transport the vehicle over the U.S. border, using Nevada Classics dealer license plates. In an effort to circumvent importation restrictions, Logan instructed Corum to tell Customs and Border Protection Officers that the vehicle was being transported into the U.S. for one day, for a car show.
Customs and Border Protection Officers suspected that the vehicle was in fact being illegally imported into the U.S. for sale, and initiated further investigation into the matter. The vehicle, which is worth approximately $85,000, was seized by officers.
The plea and sentencing are the result of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and Officers from U.S. Customs and Border Protection, under the direction of James Engleman, Director of Field Operations.Stars of ‘Real Housewives of New Jersey’ Television Series Indicted on Fraud and Tax ChargesRead the Press Release
NEWARK, N.J. – Two of the stars of the Bravo television show “The Real Housewives of New Jersey” were charged today in a conspiracy to defraud lenders and illegally obtain mortgages and other loans as well as allegedly hiding assets and income during a bankruptcy case, U.S. Attorney Paul J. Fishman announced.
Teresa Giudice, 41, and her husband, Giuseppe “Joe” Giudice, 43, both of Towaco, N.J., were charged with conspiracy to commit mail and wire fraud, bank fraud, making false statements on loan applications and bankruptcy fraud in a 39-count indictment returned today by a federal grand jury. The indictment also charges Giuseppe Giudice with failure to file tax returns for tax years 2004 through 2008, during which time he allegedly earned nearly $1 million
“The indictment returned today alleges the Guidices lied to the bankruptcy court, to the IRS and to a number of banks,” U.S. Attorney Fishman said. “Everyone has an obligation to tell the truth when dealing with the courts, paying their taxes and applying for loans or mortgages. That’s reality.”
“The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join the United States Attorney for the District of New Jersey and our law enforcement colleagues in announcing this indictment today,” Special Agent in Charge A. Derek Evans said. “We are committed to our partnerships with federal, state, and local law enforcement to address mortgage fraud cases throughout the country. The American people need to be assured that their government is working to ensure integrity in the financial services and housing industries and that those involved in criminal misconduct that undermines that integrity will be held accountable.
“The privilege of living well in the United States carries certain real responsibilities, including filing tax returns when required and paying the correct amount of tax,” Shantelle P. Kitchen, Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office, said. “Today’s indictment alleges the Giudices did not live up to their responsibilities by failing to file tax returns, falsifying loan applications and concealing assets in their bankruptcy petition. The reality is that this type of criminal conduct will not go undetected and individuals who engage in this type of financial fraud should know they will be held accountable.”
According to the Indictment:
From September 2001 through September 2008, Giuseppe and Teresa Giudice allegedly engaged in a mail and wire fraud conspiracy in which they submitted to lenders fraudulent mortgage and other loan applications and supporting documents in order to obtain mortgages and other loans. The Giudices falsely represented on loan applications and supporting documents that they were employed and/or receiving substantial salaries when, in fact, they were either not employed or not receiving such salaries.
For example, in September 2001, Teresa Giudice applied for a mortgage loan of $121,500 for which she submitted a loan application that falsely claimed that she was employed as an executive assistant. She also submitted fake W-2 Forms and fake paystubs purportedly issued by her employer. The indictment also charges specific instances where the Giudices committed bank fraud and loan application fraud in the course of obtaining loans from several banks.
On Oct. 29, 2009, the Giudices filed a petition for individual Chapter 7 bankruptcy protection in U.S. Bankruptcy Court in Newark. Over the next few months, they filed several amendments to the bankruptcy petition. As part of the bankruptcy filings, the Giudices were required to disclose to the United States Trustee, among other things, assets, liabilities, income, and any anticipated increase in income. The indictment alleges that the Giudices intentionally concealed businesses they owned, income they received from a rental property, and Teresa Giudice’s true income from the television show “The Real Housewives of New Jersey,” website sales, and personal and magazine appearances. The Giudices concealed their anticipated increase in income from the then-upcoming Season Two of the Bravo television show. The Giudices are charged with multiple counts of bankruptcy fraud for concealing and making false oaths and declarations about the assets and income during their bankruptcy case.
The indictment also alleges that during tax years 2004 through 2008, Giuseppe Giudice received income totaling $996,459, but did not file tax returns for those years.
The conspiracy to commit mail and wire fraud count carries a maximum potential penalty of 20 years of in prison and a $250,000 fine. The bank fraud and loan application fraud counts each carry a maximum potential penalty of 30 years in prison and a $1 million fine. The bankruptcy fraud counts each carry a maximum penalty of five years in prison and a $250,000 fine. The failure to file a tax return counts each carry a maximum penalty of one year in prison and a $100,000 fine.
U.S. Attorney Fishman credited special agents of the Federal Deposit Insurance Corporation, Office of Inspector General, New York Region, under the direction of Special Agent in Charge A. Derek Evans; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and Region 3 U.S. Trustee Roberta DeAngelis and the Newark office of the U.S. Trustee, with the investigation which led to today’s indictment.
The government is represented by Assistant U.S. Attorneys Jonathan W. Romankow and Rachael Honig of the U.S. Attorney’s Office, Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty
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Defense counsel:
Giuseppe Giudice: Miles Feinstein Esq., Paterson
Teresa Giudice: Henry E. Klingeman Esq., NewarkGiudice, Giuseppe and Teresa Indictment
St. Louis Man Sentenced for Firearm OffenseRead the Press Release
Johnny R. Wilbourn, a twenty-eight year old St. Louis, MO, man was sentenced in federal court on July 29, 2013, to four years in prison for unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Wilbourn was also sentenced to three years supervised release after his prison term, a $100 special assessment, and a $300 fine. Court proceedings revealed that on February, 13, 2013, a law enforcement official checking fares aboard a Metrolink train discovered Wilbourn without a ticket. A background check revealed two active warrants for Wilbourn. He was arrested and a loaded firearm was recovered from inside his coat.
Prior to February 13, 2013, Wilbourn had been convicted of a crime that was punishable by a term of imprisonment of more than one year.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Clair County Sheriff’s Department. Special Assistant United States Attorney Stuart J. Zander prosecuted the case.
Spokane Man Sentenced as Armed Career Criminal for Firearm PosessionRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Byron Cornelius Prince, age 49, of Spokane, Washington, was sentenced for the crime of being a previously convicted felon in possession of a firearm. United States District Court Judge Thomas O. Rice sentenced Prince to a 180 month term of imprisonment, to be followed by a 5 year term of court supervision after release from Federal prison. Because of his criminal history, which included three crimes of violence, Judge Rice found that Prince was an Armed Career Criminal. Prince has been in custody since November 14, 2012.
Prince was convicted following a two day jury trial in Federal District Court in Spokane, Washington. The trial began on April 29, 2013 and concluded with Princes's conviction on April 30, 2013. Evidence introduced at trial established that on the evening of June 21, 2011, Prince shot himself in the leg with a .22 caliber pistol during an argument with another individual. The shooting occurred near Prince's car, which was parked on the street outside Prince's residence in Spokane. As part of the investigation following the shooting, police officers obtained a warrant to search Prince's vehicle and found a .22 caliber pistol and holster in the trunk.
Michael C. Ormsby said, "The message should be clear, if you are a felon and you possess a firearm, the penalties will be severe. If you are an Armed Career Criminal, you will face a 15-year mandatory prison sentence. The safety of the community demands these sanctions."
The investigation was conducted by the Spokane Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.
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Previously Convicted Felon Pleads Guilty to Stolen Identity Tax Refund Scheme and Possession of A FirearmRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, announce that defendant David Joseph, 27, of Ft. Lauderdale, pled guilty on Friday, July 26, 2013, to one count of filing false claims with the IRS, in violation of 18 U.S.C. § 287, one count of access device fraud, in violation of 18 U.S.C. § 1029(a) (3), one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A (a) (1), and one count of possession of a firearm by a convicted felon, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(2).
Sentencing is scheduled for October 4, 2013 before U.S. District Judge William J. Zloch. At sentencing, the defendant faces a maximum of five years in prison on the fraudulent claim count, a maximum of 10 years in prison on the access device fraud count, a maximum of two years on the aggravated identity theft count, and a maximum of 10 years in prison on the count of possession of a firearm by a convicted felon.
According to court documents, on April 25, 2013, USSS and IRS-CI agents executed a search warrant at a residence in West Park, Florida, regarding possible stolen identities and tax refund fraud (SIRF) activities at the subject location. SIRF involves the unauthorized use of victims’ identities and personal information to file fraudulent tax returns requesting fraudulent refunds. During the search, the agents recovered numerous notebooks, medical printouts, IRS correspondence, prepaid debit cards, bank documents, and various other documents that contained thousands of access devices — victims’ names with corresponding social security numbers and dates of birth. A fully loaded semi-automatic MasterPiece Arms 9 mm pistol and additional ammunition belonging to Defendant Joseph, a previously convicted felon, was also recovered.
Mr. Ferrer commended the investigative efforts of the USSS, IRS-CI, and ATF. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Ohio Pill Dealer Sentenced to 2 Years in Federal Prison for Selling OxycodoneRead the Press Release
Police seize several items including a car, guns, hundreds of prescription pills, and $17,000 in cash during a search
HUNTINGTON – An Ohio pill dealer who sold hundreds of dollars’ worth of powerful prescription painkillers in March 2010 was sentenced today to two years in federal prison, announced U.S. Attorney Booth Goodwin. Wesley Alan Wood, 32, formerly of Proctorville, Ohio, previously pleaded guilty in April to distribution of oxycodone. In March 2010, Wood met a confidential informant working with the Metropolitan Drug Enforcement Network Team (MDENT) at a predetermined location in Hurricane, W.Va. to complete a pill transaction. After meeting in the parking lot of a Wal-Mart store located in Hurricane, W.Va., the police informant entered the defendant’s vehicle and rode with Wood, and his wife, Kristina Wood, to a nearby Budget Inn Motel to complete the pill transaction. Wood later sold 85 80-milligram oxycodone tablets to the informant while the two were inside of a rented motel room.
Following the transaction, Kristina Wood drove the defendant and the informant back to the Wal-Mart parking lot. Wesley Wood repeatedly asked the informant where he had parked his vehicle. After failing to locate the informant’s vehicle, Wood sat a 9-millimeter pistol in his lap and told the informant to “get the [expletive] out of my car.” Wood and his wife then exited the Wal-Mart parking lot and were stopped by police. During a search of Wood’s vehicle, officers seized the defendant’s pistol, 71 80-milligram oxycodone tablets and 14 40-milligram oxycodone tablets.Officers also executed a search warrant on the defendant’s Proctorville residence. During the search, officers recovered two pistols, various prescription medications including 300 80-milligram oxycodone tablets, 166 7.5-milligram hydrocodone tablets, and, $17,453. Police also seized a 2000 Lincoln Town Car that was previously purchased by Wood. Wood told police that the car was purchased using illegal drug proceeds.
The investigation was conducted by MDENT, the Drug Enforcement Administration and the Huntington Police Department. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Ohio Crack Cocaine Dealer Sentenced to More Than 8 Years in Federal PrisonRead the Press Release
HUNTINGTON, W.Va. – An Ohio man was sentenced today to eight years and one month in federal prison for possession of crack cocaine with intent to distribute, announced U.S. Attorney Booth Goodwin. Shawn Delane Harris, also known as “Pops,” 44, of Springfield, OH, previously pleaded guilty in November 2012. On March 18, 2010, members of the Huntington Police Department conducted a traffic stop of the defendant’s vehicle on Virginia Avenue in Huntington. Harris, who was driving on a suspended license at the time, was arrested after a police search revealed marijuana and crack cocaine on his person. The crack cocaine was submitted to the West Virginia State Police Laboratory for testing and proved to be crack cocaine weighing 9.42 grams.
Harris is responsible for distributing a total of 1.34 kilograms of crack cocaine in and around Huntington.
The Huntington Police Department conducted the investigation. Assistant United States Attorney Gregory McVey handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.North Dakota U.S. Attorney’s Office to Host Third Annual Tribal Consultation ConferenceRead the Press Release
BISMARCK - North Dakota U.S. Attorney Timothy Purdon has announced that the North Dakota U.S. Attorney’s Office Third Annual Tribal Consultation Conference will be held on August 1, 2013, at the James Henry Community Center on the campus of United Tribes Technical College in Bismarck, N.D.
In Bismarck, U.S. Attorney Timothy Purdon said, “We are pleased to host our third consultation conference with the Tribes in North Dakota. Open lines of communication between the Tribes and the U.S. Attorney’s Office is key to our Anti-violence Strategy for Tribal Communities. This annual conference allows all parties interested in improving public safety on the reservations in North Dakota the chance to discuss the issue and identify areas for cooperation and improvement.”
U.S. Attorney Purdon added, “The purpose of this Tribal Consultation Conference is to bring together tribal leaders and law enforcement leaders from across the state to discuss how the U.S. Attorney’s Office can help improve public safety in tribal communities in North Dakota. We will listen to tribal concerns in breakout sessions on pressing issues such as domestic violence and juvenile justice.
We will also hear from Tribal leaders, our federal law enforcement partners, the Chief Judge of the United States District Court, Ralph R. Erickson, the North Dakota Indian Affairs Commission, and child protection professionals. By bringing these key stakeholders together, the U.S. Attorney’s Office’s hopes to continue our march forward toward safer tribal communities.”
Tribal Consultation Conference Schedule:
OPEN PRESS: 9:00 a.m. to 2:15 p.m.
* Welcoming Ceremony: 9:00 a.m.
* United States Attorney Timothy Purdon Remarks: 9:30 a.m.
* Conference Speakers: 10:00 a.m.- 2:15 p.m.The North Dakota U.S. Attorney’s Office 2013 Tribal Consultation Conference will be held on August 1, 2013, at the James Henry Community Center on the campus of United Tribes Technical College in Bismarck.
The media is welcome to the OPEN PRESS session from 9:00 a.m. to 2:15 p.m.
North Braddock Man Sentenced to Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - An Allegheny County man has been sentenced in federal court to 30 months imprisonment, to be followed by 15 years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Charles R. Gladish, 41, of North Braddock, Pa.
According to information presented to the court at the guilty plea proceeding, Gladish possessed, on Oct. 26, 2011, in excess of 50 photographs and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not attained the age of 12 years.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Gladish.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
New Indictment Charges Montgomery County Man and an Illinois Woman in A Violent Sex Trafficking ConspiracyRead the Press Release
Allegedly Used Guns, Threats, and Violence to Force the Victims to Engage
in Prostitution
Greenbelt, Maryland – A federal grand jury has returned a superseding indictment charging Jean Claude Roy, a/k/a “Dredd the Don,” and “Dreddy,” age 31, of Germantown, Maryland, and Brittney Creason, a/k/a “Kitty Amor,” age 19, of Decatur, Illinois, with conspiracy to commit sex trafficking. Roy is also charged with sex trafficking and attempted sex trafficking by force, fraud and coercion; interstate transportation for prostitution; possessing and brandishing a firearm during a crime of violence; and witness and evidence tampering. Creason was arrested today in Las Vegas, Nevada, where she was being held on unrelated charges. Roy, who was charged in the initial indictment, remains detained. The superseding indictment was returned on July 24, 2013.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for the Department of Justice Civil Rights Division Jocelyn Samuels.; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
“Protecting our communities from those who engage in human trafficking is a top priority for ICE Homeland Security Investigations,” said William Winter, special agent in charge of HSI Baltimore. "As a member of the Maryland Human Trafficking Task Force, HSI is committed to working with our law enforcement partners to investigate human trafficking, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”
According to the 12-count indictment, between August and September 2012, Roy forced an individual to engage in commercial sex acts, transported the victim across state lines to engage in prostitution and brandished a gun to facilitate the sex trafficking. The indictment further alleges that in December 2012, Roy and Creason conspired to force three individuals to engage in commercial sex acts. As part of the conspiracy, Roy and Creason are alleged to have recruited and transported females from Illinois and North Carolina, with the intent to have those women engage in prostitution. According to the indictment, Roy forced one of the victims to engage in sex acts with him, while Creason held her down. The indictment alleges that Roy forced the women to engage in prostitution by threatening them with physical force and death, brandishing a firearm and by bragging about beating murder charges. Finally, the indictment alleges that from January 1 to January 10, 2013, while Roy was in jail on related state charges, he made numerous telephone calls to an individual and had that person access online accounts and storage services belonging to Roy and Creason in order to erase evidence related to these charges.
Roy and Creason face a maximum sentenced of life in prison for conspiracy to commit sex trafficking.
Roy faces a minimum mandatory sentence of 15 years in prison and a maximum of life in prison on each of two counts of sex trafficking and two counts of attempted sex trafficking; a mandatory sentence of 7 years for first count of brandishing a firearm in relation to a crime of violence and a mandatory sentence of 25 years for second count, consecutive to any other sentence imposed, and a maximum of life in prison; a maximum of 10 years in prison for each of four counts of interstate transportation for prostitution; and a maximum of 20 years in prison for witness and evidence tampering. No court appearance has been scheduled for the defendants in U.S. District Court in Greenbelt.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human‑Trafficking/index.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, and Trial Attorney William E. Nolan of the U.S. Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit, who are prosecuting the case.
New Indictment Charges Maryland Man and an Illinois Woman in a Violent Sex Trafficking ConspiracyRead the Press Release
A federal grand jury has returned a superseding indictment charging Jean Claude Roy, aka “Dredd the Don,” and “Dreddy,” age 31, of Germantown, Md., and Brittney Creason, aka“Kitty Amor,” age 19, of Decatur, IL., of conspiracy to commit sex trafficking. Dreddy is also charged with sex trafficking and attempted sex trafficking by force, fraud and coercion; interstate transportation for prostitution; possessing and brandishing a firearm during a crime of violence; and witness and evidence tampering. Creason was arrested today in Las Vegas, where she was being held on unrelated charges. Dreddy, who was charged in the initial indictment, remains detained. The superseding indictment was returned on July 24, 2013.
The superseding indictment was announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for the Department of Justice Civil Rights Division Jocelyn Samuels; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
“Protecting our communities from those who engage in human trafficking is a top priority for ICE Homeland Security Investigations,” said William Winter, special agent in charge of HSI Baltimore. "As a member of the Maryland Human Trafficking Task Force, HSI is committed to working with our law enforcement partners to investigate human trafficking, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”
According to the 12-count indictment, between August and September 2012, Roy forced an individual to engage in commercial sex acts, transported the victim across state lines to engage in prostitution and brandished a gun to facilitate the sex trafficking. The indictment further alleges that in December 2012, Roy and Creason engaged in a sex trafficking conspiracy to force three individuals to engage in commercial sex acts. As part of the conspiracy, Roy and Creason are alleged to have recruited and transported females from Illinois and North Carolina, with the intent to have those women engage in prostitution. According to the indictment, Roy forced one of the victims to engage in sex acts with him, while Creason held her down. The indictment alleges that Roy forced the women to engage in prostitution by threatening them with physical force and death, brandishing a firearm and by bragging about beating murder charges. Finally, the indictment alleges that from Jan. 1 to Jan. 10, 2013, while Roy was in jail on related state charges, he made numerous telephone calls to an individual and had that person access online accounts and storage services belonging to Roy and Creason in order to erase evidence related to these charges.
Roy and Creason face a maximum sentenced of life in prison for conspiracy to commit sex trafficking. Roy faces a minimum mandatory sentence of 15 years in prison and a maximum of life in prison on each of two counts of sex trafficking and two counts of attempted sex trafficking; a mandatory sentence of seven years for the first count of brandishing a firearm in relation to a crime of violence and a mandatory sentence of 25 years for the second count, consecutive to any other sentence imposed, and a maximum of life in prison; a maximum of 10 years in prison for each of four counts of interstate transportation for prostitution; and a maximum of 20 years in prison for witness and evidence tampering. An initial appearance has not yet been scheduled for the defendants in U.S. District Court in Greenbelt, Md.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human‑Trafficking/index.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
U.S. Attorney Rod J. Rosenstein commended HSI Baltimore and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, and Trial Attorney William E. Nolan of the U.S. Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit, who are prosecuting the case.
More Defendants Sentenced for Murder/Marijuana Grow House ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and J.D. Patterson, Director, Miami-Dade Police Department, announced the sentencings of defendants Gilberto Santiesteban Jr., Darvis Santiesteban, Gilberto Santiesteban, Sr., Tomy Gonzalez and Lisa Gonzalez all of Miami, and Norge Manduley, of Hialeah, before U.S. District Judge K. Michael Moore.
According to court documents and statement, the defendants and other co-conspirators operated an extensive network of hydroponic marijuana grow houses throughout South Florida. In 2009, a large quantity of marijuana belonging to the organization was stolen. Members of the organization set out to find the people responsible for the theft. On June 28, 2009, Gilberto Santiesteban, Jr., Norge Manduley, along with co-conspirators Derrick Santiesteban, and Juan Felipe Castañeda kidnapped the individual who they thought was responsible for the theft of the marijuana. During the abduction, the individual was shot and killed.
Gilberto Santiesteban Jr. was sentenced to 360 months in prison, to be followed by 5 years of supervised release after having previously pled guilty to conspiracy to possess with the intent to distribute marijuana, conspiracy to commit money laundering, and conspiracy to commit kidnapping (Counts 1, 2, and 3).
Darvis Santiesteban was sentenced to 262 months in prison, to be followed by 5 years of supervised release after having previously pled guilty to Counts 1 and 2 of the indictment. Count 1 charged him with conspiracy to possess one thousand (1,000) or more marijuana plants with the intent to distribute and Count 2 charged him with conspiracy to commit money laundering.
Gilberto Santiesteban, Sr., was sentenced to 120 months in prison, to be followed by 5 years of supervised release after having previously pled guilty to Count 1 of the indictment charging him with conspiracy to possess 1,000 or more marijuana plants with the intent to distribute.
Norge Manduley was sentenced to 240 months in prison, to be followed by 5 years of supervised release after having previously been convicted at trial of one count of conspiracy to possess less than one hundred (100) marijuana plants with the intent to distribute.
Tomy Gonzalez was sentenced to 195 months in prison, to be followed by 5 years of supervised release after having previously pled guilty to one count of conspiracy to possess one thousand (1000) or more marijuana plants with the intent to distribute.
Lisa Gonzalez was sentenced to 146 months in prison, to be followed by 5 years of supervised release after having previously pled guilty to one count of conspiracy to possess one thousand (1000) or more marijuana plants with the intent to distribute.
The following individuals were previously sentenced for their participation in the conspiracy:
Derrick Santiesteban was sentenced to life in prison on charges of drug, money laundering, and kidnapping with death resulting.
Juan Felipe Castañeda was sentenced to 360 months in prison, to be followed by 5 years of supervised release, on charges of conspiracy to possess with the intent to distribute marijuana.
Alexander Santiesteban was sentenced to 262 months in prison, to be followed by 5 years of supervised release, on charges of conspiracy to possess one thousand (1,000) or more marijuana plants with the intent to distribute and conspiracy to commit money laundering.
German Silvestro was sentenced to 144 months in prison, to be followed by 5 years of supervised release. David Silva, Francisco Javier Diaz, Alejandro Pimentel, and John Villalonga were each sentenced to 120 months in prison, to be followed by 5 years of supervised release. Raul Fabian Ramirez, Jr. was sentenced to 46 months in prison, to be followed by 2 years of supervised release. Each of these defendants previously pled guilty to Count 1 of the indictment, charging them with conspiracy to possess 1,000 or more marijuana plants with the intent to distribute.
Yadira Santiesteban was sentenced to 70 months in prison, to be followed by 3 years of supervised release. Dayana Castellanos was sentenced to 37 months in prison, to be followed by 2 years of supervised release. Estrella J. Mijares was sentenced to 37 months in prison, to be followed by 1 year of supervised release. Each of these defendants pled guilty to one count of conspiracy to commit money laundering.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and Miami-Dade Police Department. The case is being prosecuted by Assistant U.S. Attorneys William Athas and Pat Sullivan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Michael James Franks Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on July 25, 2013, before Chief U.S. District Judge Dana L. Christensen, a 37-year-old resident of Browning, was sentenced to a term of:
Prison: 15 months
Special Assessment: $ 100
Supervised Release: 5 years
FRANKS was sentenced in connection with his guilty plea to failure to register as a sexual offender.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On December 7, 2000, FRANKS pleaded guilty to sexual intercourse without consent and was ordered to register as a sex offender.
On April 25, 2012, law enforcement found FRANKS at a residence in Blackfoot where he had been living, but was not registered at that address.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that FRANKS will likely serve all of the time imposed by the court. In the federal system, FRANKS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the United States Marshals Service.
Mexican National Sentenced to 7 Years for Receipt of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Ricardo Reyes, 33, a Mexican national, was sentenced for receiving child pornography. The Honorable Richard G. Kopf, Senior United States District Court Judge, sentenced Reyes to seven years in prison. There is no parole in the federal system. After his release from prison, if not deported, Reyes will begin a five year term of supervised release.
In October 2012 Investigators with the Nebraska State Patrol and FBI Cyber Crimes Task Force downloaded several images of child pornography from a South Omaha residence. A federal search warrant seeking evidence of child pornography was served on January 15, 2013.
Forensic analysis of Reyes’s computer revealed approximately 100 videos of child pornography. The videos included children from 2 to 9 years of age engaged in various sexual acts. Reyes admitted to downloading child pornography and keeping the child pornography he downloaded.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mexican Boat Captain Sentenced to Federal Prison After Fleeing from Coast GuardRead the Press Release
BROWNSVILLE, Texas – Jose Alejandro Carrillo, 24, of Matamoros, Mexico, has been ordered to prison following his conviction of obstructing boarding, United States Attorney Kenneth Magidson announced today along with Rear Admiral Kevin S. Cook, Eighth Coast Guard District Commander. Castillo, who has been in custody since his arrest, pleaded guilty on April 24, 2013.
Today, U.S. District Judge Andrew S. Hanen sentenced Carrillo to 15 months in prison.
Carrillo was the captain of a Mexican fishing boat, typically referred to as a “launcha,” that fled from a Coast Guard vessel attempting to detain them for an inspection on March 16, 2013. Carrillo had been fishing illegally in U.S. waters and did not want to lose his catch or the launcha. A chase on rough open seas ensued, during which Carrillo had another crewmember, Ismael Lopez-Ortiz, assist him in controlling the launcha. During the chase, the launcha twice made contact the Coast Guard vessel. Carrillo finally stopped and allowed the launcha to be boarded and inspected after Carrillo’s crew asked him to stop the flight."When vessel operators fail to stop and attempt to flee the Coast Guard, they put themselves and others at great risk," said Cook. "The Coast Guard hopes that this sentence serves as a deterrent to other operators in similar situations. We appreciate and commend the efforts of the Department of Justice and the Coast Guard Investigative Service for bringing this case forward."
Carrillo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case, investigated by the Coast Guard Investigative Service, was prosecuted by Assistant United States Attorney Joseph Leonard.
Mercer Co. Man Pleads Guilty to Federal Mine Safety ViolationRead the Press Release
BLUEFIELD, W. Va. – A Mercer County man who falsified mandatory mine safety reports while employed at several West Virginia mining operations pleaded guilty today to a federal charge, announced U.S. Attorney Booth Goodwin. Craig Belcher, 36, of Bluefield, W.Va., pleaded guilty to providing a false statement, representation and certification in a Mine Safety and Health Administration (MSHA) document.
In January 2009, Belcher was hired to work as an underground mine foreman at Spartan Mining Company’s Road Fork No. 51 mine located in Wyoming County. Also in February 2009, Belcher was hired to perform mine foreman duties at Frasure Creek’s Mine No. 15 located in Fayette County. Belcher also performed similar foreman duties in May 2009 at Pay Car’s Mine No. 58 in McDowell County, and, in July 2010 at Double Bonus’s Mine No. 65 in Wyoming County.
Between January 27, 2009 and July 13, 2010, Belcher signed pre-shift and on-shift reports which indicated that he had properly examined particular sections at each mine. Belcher was not certified as a foreman when he completed the mine reports. Belcher also falsified information on pre-shift and on-shift reports by using foreman’s numbers that did not belong to him.
Belcher faces up to five years in prison and a $250,000 fine when he is sentenced on December 2, 2013 by Senior United States District Judge David A. Faber.
The investigation was conducted by MSHA. Assistant United States Attorney Blaire Malkin is in charge of the prosecution.
Medical Center Inmate Pleads Guilty to Assaulting Federal EmployeeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an inmate at the U.S. Medical Center for Federal Prisoners Springfield, Mo., has pleaded guilty to assaulting a federal employee.
Willard Begay, 33, pleaded guilty before U.S. Magistrate Judge David P. Rush on Friday, July 26, 2013, to the charge contained in a Nov. 7, 2012, federal indictment.
Begay admitted that the assault occurred while he was meeting with a federal correctional counselor on Oct. 1, 2012. Begay was escorted to the counselor’s office to discuss some issues he had with other inmates as well as Begay’s transfer to another unit. The counselor advised Begay that the best situation would be for him to go to a locked unit where he would be removed from the problems.
At the conclusion of their session, the counselor asked Begay to place his hands behind his back so he could apply hand restraints. Begay placed his hands behind his back, and the counselor started to apply a cuff to Begay’s left wrist. Instantly, Begay turned around and hit the counselor in the face with a closed fist. The counselor fell back about three steps, stunned and dazed from the punch. Begay then grabbed a nearby computer printer and threw the computer printer. The combination of Begay’s closed-fist punch and the throwing of the computer printer caused the counselor to sustain a broken orbital bone, lacerations requiring stitches and bruising. Additional staff members assisted in apprehending Begay and taking the counselor to the medical center’s emergency room.
Under federal statutes, Begay is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the FBI, the U.S. Medical Center for Federal Prisoners and the Federal Bureau of Prisons.
McLaughlin Woman Charged with Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, woman has been indicted by a federal grand jury.
Rhonda Brown, age 41, was indicted on July 17, 2013, for Assaulting, Resisting and Impeding a Federal Officer. Brown appeared before U.S. Magistrate Judge William D. Gerdes on July 26, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Brown is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Brown was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Longmont Man and Business Sentenced for Illegally Discharging Sewage into the Union ReservoirRead the Press Release
DENVER – John Albert Paquette, age 53, of Longmont, Colorado, and his company, East Point, LLC, have been sentenced today by Chief U.S. District Court Judge Marcia S. Krieger for illegally discharging sewage into the Union Reservoir, the U.S. Attorney’s Office and the Environmental Protection Agency (EPA) Criminal Investigation Division (CID) announced.
Paquette was sentenced to pay a $10,000 fine. His company, East Point, LLC, was also sentenced to pay a $10,000 fine.
On March 19, 2013, Paquette and East Point were charged by Information. On April 4, 2013 both defendants entered guilty pleas before Chief Judge Krieger. Paquette and East Point were sentenced on July 29, 2013.
According to court documents, on June 20, 2012, Paquette and East Point, LLC, knowingly discharged 1,000 gallons of raw sewage from a hose into the Oligarchy Ditch, which flowed into the Union Reservoir, located in Longmont, Colorado. The sewage came from Paquette’s nearby self-storage company.
“Dumping sewage into a public irrigation ditch that leads to a public water reservoir has serious environmental and health consequences,” said U.S. Attorney John Walsh. “The defendant in this case now knows there are criminal penalties for his conduct.”
“Illegally discharged sewage can sicken people, fish and wildlife,” said Jeffrey Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Colorado. “This case shows that those who try to save a buck by cutting corners will be vigorously prosecuted.”
This case was investigated by the Environmental Protection Agency Criminal Investigation Division.
The defendants were prosecuted by Assistant U.S. Attorney Suneeta Hazra.
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Leaders in A $3 Million Marijuana and Money Laundering Conspiracy Each Sentenced to over 10 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Jose Valenzuela, age 59, and his wife Beatriz Valenzuela, age 56, both of Nogales, Arizona, today to 137 months and 125 months in prison, respectively, each followed by five years of supervised release, for conspiracy to distribute more than 1,000 kilograms of marijuana and for a money laundering conspiracy. The Valenzuelas also forfeited bank accounts worth $1,265,740.65 and $970,000 in cash.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
“This case is an excellent example of how the teamwork between HSI and the Prince George’s County Police Department in dismantling a drug trafficking and money laundering organization can benefit our communities,” said William Winter, HSI special agent in charge in Baltimore. “HSI works aggressively to keep illegal drugs out of our communities, and to dismantle the criminal networks that profit from drug trafficking and the crime that surrounds it.”
According to the Valenzuelas’ guilty pleas, between June 6, 2011 and July 9, 2012, Jose and Beatriz Valenzuela utilized package shipping businesses they owned to ship marijuana from Arizona to Maryland and received proceeds in return. Antonio Hill, Jr., coordinated the shipment of drugs from Arizona to Maryland and managed the laundering of the proceeds to the sources of supply in Arizona, with the assistance of his brother, Erico Hill, who also coordinated the distribution of the marijuana in Maryland. Conspirators James Lewis, Jr., Ernest Rawlings, Jr., Errol Comma and Jane Nkemateh all assisted in the receipt of packages containing marijuana from Arizona. Lewis and Kenneth Davis further assisted in the repackaging of marijuana for distribution in Maryland, and the laundering of the proceeds to the sources of supply in Arizona. On July 11, 2012, law enforcement executed search warrants at the Valenzuelas’ home and businesses. They recovered $970,000 in cash from their home and more than 750 pounds of marijuana from the businesses.
According to their plea agreements, in order to evade IRS filing requirements for transactions involving more than $10,000 in cash, and conceal from the government large cash transactions by narcotics dealers, Jose and Beatriz Valenzuela arranged for Hill and other conspirators to deposit the proceeds of the conspiracy into bank accounts they controlled, with each transaction being less than $10,000. Some of those accounts were in the names of third parties.
Antonio Hill, Jr., a/k/a NuNu, age 33, of Largo, Maryland; Erico Hill, a/k/a Rico, age 31, of Hyattsville, Maryland; James Lewis, Jr., a/k/a Little Man, age 23, of Hyattsville; Kenneth Davis, a/k/a Benny, age 25 of Hyattsville; Ernest Rawlings, Jr.,a/k/a Junior, age 30, of Riverdale, Maryland; and Errol Comma, a/k/a E, age 31, of Lanham, Maryland, have all pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Jane Nkemateh, a/k/a Jayne Nekematah, age 29, of New Carrollton, Maryland, also pleaded guilty and was sentenced to two years in prison and ordered to forfeit bank accounts worth $1,265,740.65.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, HSI Phoenix and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Mara Zusman Greenberg and Christen A. Sproule, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Largo Puppeteer Sentenced to 20 Years in Federal PrisonRead the Press Release
Tampa, FL - U.S. District Judge James D. Whittemore today sentenced Ronald William Brown (58, Largo) to 20 years in federal prison for receipt and possession of child pornography. In addition, he was sentenced to a lifetime of supervision, following his release from prison. The court also ordered Brown to forfeit his computer equipment and phone which were used to commit the offenses. On March 25, 2013, Brown pleaded guilty to five counts of receiving child pornography and three counts of possessing child pornography.
According to court documents, approximately on May 23, 2012, Michael Arnett was arrested by Homeland Security Investigations special agents in Roeland Park, Kansas for the production of child pornography. This investigation revealed that Arnett, had images including bondage-type photographs, involving four child victims. Previously, on May 15, 2012, a search warrant had been executed at Arnett's residence and computers were seized. A forensic examination of Arnett's computers revealed that he had been communicating and exchanging child pornography materials with other individuals using online chat programs, as well as engaging in extremely graphic discussions regarding the kidnaping, sexually abuse, murder, and eating of children. One of the individuals with whom Arnett discussed these acts was Ronald William Brown.
On July 19, 2012, law enforcement agents conducted a search of Brown's residence in Largo, Florida. During the search, agents seized multiple pieces of electronic media, including, but not limited to, a computer, various CD/DVDS, micro disks, cameras and a thumb drive. A forensic review of Brown's electronic media showed that he possessed hundreds of images of child pornography and child erotica, including various images showing children being bound and tortured. Additionally, Brown had hundreds of images of deceased children. In chats with various individuals, Brown discussed abducting, torturing, and murdering children.
“Brown, a church puppeteer, lived a double life,” said Shane Folden, deputy special agent in charge of Homeland Security Investigations Tampa. “Behind closed doors, he had a sick obsession that focused on children. Let this case be an example to other child predators. We will find you, arrest you and make sure you are prosecuted to the fullest extent of the law. Homeland Security Investigations does not tolerate adults that prey on innocent children.”
Brown’s sentencing is part of Operation Holitna, an ongoing investigation led by Homeland Security Investigations that originated in Boston. In 2010, the U.S. Attorney's Office for the District of Massachusetts and HSI Boston arrested Robert Diduca on charges of producing child pornography. Diduca was convicted and sentenced to 18 years in federal prison in June 2012. Forensic analysis of Diduca's computer led investigators to the Netherlands where a Dutch national was arrested and charged with producing, distributing and possessing child pornography, as well as sexually assaulting 87 minors. Since that time, a worldwide network of offenders continues to be unraveled, which also included Brown. Defendants and victims continue to be identified around the world. To date, more than 160 children have been rescued and more than 50 perpetrators arrested worldwide as a result of Operation Holitna.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Kole Michael Parsons Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on July 26, 2013, before Chief U.S. District Judge Dana L. Christensen, KOLE MICHAEL PARSONS, a 22-year-old resident of Browning and an enrolled member of the Blackfeet Tribe, was sentenced to a term of:
Prison: 45 days
Special Assessment: $100
Supervised Release: 3 years with first 6 months in residential reenter center
PARSONS was sentenced in connection with his guilty plea to burglary.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On October 30, 2012, Blackfeet Tribal Security notified the FBI that the Blackfeet Tribal Offices were burglarized over the weekend of October 26, 2012, through October 28, 2012. Multiple items were reported missing, including a 9 mm pistol, a Mac Book Pro laptop, a GPS unit, and a camera.
A Tribal Security officer surveyed the offices and observed signs of forced entry at several locations. The officer then went to review video surveillance for the previous weekend. During the review, the officer observed PARSONS enter the Tribal Offices, pass through the halls, and enter and exit various offices. The officer identified the intruder as PARSONS without hesitation, stating that he "knew it was him right off the bat."
The officer knew PARSONS as he had seen him visit a relative of PARSONS at the office every other day for the last month and had seen PARSONS "around" for approximately four years.
Specifically, the video shows PARSONS holding a laptop, "several duffel bags," and he is seen entering and exiting various offices, either using keys or prying open the doors. PARSONS obtained the keys by stealing them from his relative's purse.
When PARSONS spoke with his relative, he told her that he indeed broke into the Blackfeet Tribal Offices and stole a pistol from the Tribal Security Office. PARSONS then stated that he sold the pistol to a drug dealer while at the grocery store. The gun has not been recovered.
When interviewed by law enforcement, PARSONS admitted that he went to the Tribal Security Office and took a 9 mm pistol, 2 clips, and 2 boxes of bullets. He maintains that he only took a weapon and ammunition-nothing else.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that PARSONS will likely serve all of the time imposed by the court. In the federal system, PARSONS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
KC Woman Sentenced for Fraud, Identity TheftRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for mail fraud and aggravated identity theft in a scheme to fraudulently rent apartments and a business office, lease cars and open bank accounts.
Deshonda Latrice Anderson, 25, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to five years and six months in federal prison without parole. The court also ordered Anderson to pay $39,976 in restitution to her victims.
Anderson moved to Kansas City from Texas in February 2012. Between February and June 2012, Anderson used pseudonyms, fake and stolen Social Security numbers, forged paystubs, W-2 and W-3 forms, false employment and residence information, a sham business, bad checks and credit cards to secure for herself a line of credit, bank accounts, apartments, a business office, cars, other goods and cash. Victims of Anderson’s four-month scheme include at least 39 individuals, businesses and financial institutions.
In order to secure a place to live and transportation, Anderson defrauded at least 11 landlords and three car dealerships or leasing agencies. Anderson wrongfully appropriated for her personal use a 2011 Chevrolet Suburban, a 2012 Chevrolet Camaro and a 2012 Audi A4 in just four months. The loss to those victims of Anderson’s scheme totals at least $39,811.
Anderson incorporated Vixen Kandi Company on March 8, 2012. Vixen Kandi Company has no apparent legitimate business operation, production or revenue. Anderson used several worthless forms of payment to rent office space from Regus Management Group. The loss to Regus related to Anderson’s scheme is $669. Anderson also presented to M&I Bank false personal information and fake business information so that the bank would open four accounts for Vixen Kandi Company and treat it as a legitimate account holder. The loss to M&I Bank related to the fraud scheme totals $2,621.
Anderson opened an account at UMB Bank using her infant child’s Social Security number. The bank provided Anderson with starter checks; she conducted worthless deposits into the account and withdrew cash. UMB Bank recognized the fraudulent activity and closed the account two weeks later. Even though the account was closed, Anderson continued to present checks for goods and services drawn on the account. Anderson’s scheme resulted in a loss of $102 to UMB Bank.
Anderson engaged in a similar course of conduct at no fewer than five other banks. At each bank, Anderson used falsified personal information and checks drawn on insufficient funds to open personal accounts. She also used a fraudulent certificate of incorporation in order to open business accounts. Anderson deposited worthless checks into the accounts then withdrew cash or presented checks for payment against those accounts. The loss related to Anderson’s scheme for those banks totals at least $6,523.
This case was prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the Kansas City, Mo., Police Department, the U.S. Postal Inspection Service, and the Social Security Administration – Office of Inspector General.
Jewelry Store Owner Pleads Guilty to Buying and Selling Stolen GoodsRead the Press Release
LAS VEGAS – A Las Vegas jewelry store owner pleaded guilty today to receiving and selling stolen goods totaling about $196,500, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Nabil Sakkab, 39, of Las Vegas, pleaded guilty before U.S. District Judge James C. Mahan to two counts of receipt and sale of stolen goods, and is scheduled to be sentenced on Oct. 28, 2013, at 10:30 a.m. Sakkab faces up to 10 years in prison and a $250,000 fine on each count.
“According to a December 2012 report prepared for Congress, organized retail crime exposes the United States to economic, public health, and domestic security dangers,” said U.S. Attorney Bogden. “Estimates of the losses to retailers range from $15 billion to $37 billion annually. Additionally, consumers end up paying for the losses in the form of higher prices on goods, and states lose the tax revenue that would otherwise be generated from the sale of these goods by legitimate retailers.”
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department Special Investigations Section, and was part of a federal and local law enforcement effort to combat organized retail theft. The case is being prosecuted by Assistant United States Attorney Christina M. Brown.
According to the plea agreement, from about Sept. 20, 2011, to Feb. 3, 2012, Sakkab knowingly purchased stolen jewelry from an individual at a Las Vegas jewelry store Sakkab previously co-owned. The goods included Rolex and Tag Heuer watches stolen in other states and transported to Las Vegas prior to Sakkab’s purchase. Sakkab resold the stolen jewelry at the store and privately to third parties for personal gain. The parties agreed that the loss to the victims of the thefts is $196,500.Hull Man Sentenced to 7 Years on Child Pornography ChargesRead the Press Release
A man who distributed and received child pornography was sentenced July 24, 2013, to seven years in federal prison.
Gary Brummel, age 42, of Hull, Iowa, received the sentence after an April 17, 2013, guilty plea to one count of distributing child pornography and one count of receiving child pornography. At the guilty plea, Brummel admitted he knowingly used the Internet to distribute and receive child pornography.Brummel was sentenced in Sioux City by United States District Court Judge Donald E. O’Brien. Brummel was sentenced to 84 months’ imprisonment. A special assessment of $200 was imposed, and Brummel must also serve a five-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4095.
Hospital Employee and Accomplice Sentenced for Tax Refund Fraud Using Stolen Patient InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Scott J. Israel, Sheriff, Broward Sheriff’s Office, announce that defendant Shalamar Major, 32, of Deerfield Beach, Florida, was sentenced today before U.S. District Judge Robin S. Rosenbaum, in connection with her previous conviction for unauthorized HIPAA disclosures, in violation of Title 42, United States Code, Section 1320d-6, and conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286, in connection with a tax refund scheme that used stolen social security and other personal identifying information to file on-line tax returns claiming fraudulent tax refunds from the IRS.
At today’s hearing, Judge Rosenbaum sentenced defendant Major to 18 months in prison to be followed by three years of supervised release and ordered that she pay $15,795 in restitution to the IRS. Previously, on July 22, 2013, Judge Rosenbaum sentenced co-defendant Tanisha Wright, 27, of Deerfield Beach, Florida, to 40 months in prison followed by three years of supervised release and ordered that she pay $174,130 in restitution to the IRS. Defendant Wright had previously plead guilty to three counts of identity theft, in violation of Title 18, United States Code, Section 1028(a)(7), three counts of theft of public money, in violation of Title 18, United States Code, Section 641, one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, one count of theft of mail, in violation of Title 18, United States Code, Section 1708, and one count of conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286.
According to documents filed and statements made in court, from January through June 2012, Wright and Major possessed and used stolen personal identifying information of others to file federal income tax returns claiming tax refunds to which they were not entitled. Specifically, defendant Shalamar Major was employed as a scheduler at the Boca Raton Regional Hospital in Boca Raton, Florida. As a scheduler, she had access to personal identification information of Boca Raton Regional Hospital patients, including their names, dates of birth, social security numbers, and other sensitive personal information. In exchange for the promise of future payments, Shalamar Major unlawfully provided Tanisha Wright sensitive personal identifying information, including names, dates of birth, and social security numbers, of numerous Boca Raton Regional Hospital patients. Tanisha Wright, upon receipt of the sensitive personal identifying information of the Boca Raton Regional Hospital patients, used this information to electronically file fraudulent federal income tax returns without the knowledge or authorization of the victims and claimed refunds to which she was not entitled from the IRS.
Tanisha Wright thereafter instructed the IRS to direct-deposit the refunds onto pre-paid reloadable debit cards that were already in her possession and had been previously stolen out of the U.S. mail. Once the debit cards had been funded by the Department of the Treasury, Tanisha Wright would convert the funds on the debit cards to cash by making withdrawals at local automated teller machines or would make personal purchases at various local businesses. Once Tanisha Wright obtained cash from the fraudulently funded debit cards, she would split the proceeds with Shalamar Major. In total, at least 57 fraudulent tax returns were filed with the IRS, requesting $306,720 in federal tax refunds.
Mr. Ferrer commended the investigative efforts of IRS-CI, the U.S. Postal Inspection Service, and the Broward Sheriff’s Office. This case is being handled by Assistant U.S. Attorney Marc Anton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former U.S. Postal Letter Carrier Convicted of Disability FraudRead the Press Release
ANNISTON – A federal jury last week convicted a former U.S. Postal Service letter carrier for a series of offenses related to workers’ compensation fraud, announced U.S. Attorney Joyce White Vance and Special Agent in Charge Max Eamiguel, Southern Area Field Office, U.S. Postal Service, Office of Inspector General.
The jury deliberated about six hours before convicting SEAN ERIC SLATON, 40, of Anniston, on eight counts of false statements in connection with the Workers’ Compensation Program, 24 counts of Wire Fraud, and one count of theft of government property. The jury returned the verdict following a seven-day trial before U.S. District Judge Karon O. Bowdre.
"Government employees who lie and cheat to receive benefit funds that have been set aside to support injured and disabled workers are stealing from U.S. taxpayers and should expect to be prosecuted," Vance said.
“The federal workers’ compensation program is established to assist those individuals with disabilities arising from an on-the-job injury," Eamiguel said. "In 2012, the Postal Service paid $1.3 billion in costs associated with the workers’ compensation program. The vast majority of postal employees who are receiving these benefits are truly disabled and need this valuable government program to recover and eventually return to work. There are some employees, however, who abuse the system and attempt to fraudulently obtain benefits to which they are not entitled," he said. "The U.S. Postal Service, Office of Inspector General, is dedicated to investigate such instances and, with the assistance of the U.S. Attorney’s Office, prosecute those individuals to the fullest extent of the law.”
Slaton began receiving payments from the Department of Labor Office of Workers’ Compensation Programs in 2002 after he was deemed disabled from a 2001 vehicle accident that occurred while he was working as a city letter carrier in Birmingham. He was charged with devising a scheme to defraud the Department of Labor and the Postal Service beginning in July 2011 by reporting false information to the Postal Service and Department of Labor and misrepresenting and concealing his physical abilities and limitations. During the course of the investigation, Slaton was observed engaging in physical activities that exceeded his prescribed medical restrictions. Slaton also was charged with filing false reports that misrepresented his income, employment, and business activities in 2009, 2010, 2011 and 2012.The U.S. Postal Service, Office of Inspector General, investigated the case, which was prosecuted by the U.S. Attorney’s Office for the Northern District of Alabama.